[HISTORY: Adopted by the City Council of the City of Lexington as indicated in article histories. Amendments noted where applicable.]
[Adopted 12-12-1974 (Ch. 12, Art. IV of the 1970 Code)]
Each person holding a mixed beverage restaurant and caterer's license issued by the Virginia Alcoholic Beverage Control Board shall obtain from the Commissioner of the Revenue of the City a license to sell mixed beverages in the City, and the tax upon the issuance of such license shall be as follows:
A. 
Persons operating restaurants, including restaurants located on premises of and operated by hotels and motels:
(1) 
For each restaurant with a seating capacity at tables for 50 to 100 persons: $100 per annum;
(2) 
For each restaurant with a seating capacity at tables for more than 100 but not more than 150 persons: $175 per annum;
(3) 
For each restaurant with a seating capacity at tables for more than 150 persons: $250 per annum;
(4) 
For each caterer: $250 per annum; and
(5) 
Mixed beverage special events license: $10 for each day of each event.
B. 
A private, nonprofit club operating a restaurant located on the premises of such club: $175 per annum.
C. 
No license tax shall be either charged or collected for the privilege of selling and serving mixed beverages in passenger airplanes, dining rooms and other designated rooms of ships and in dining cars, buffet cars and club cars of trains and in rooms designated by the board of establishments of air carriers of passengers at airports.
The definitions as set forth in § 4-2 of the Code of Virginia,[1] as amended, are adopted as a part of this section, and the term "mixed beverage" or "mixed alcoholic beverage" shall mean a drink composed in whole or in part of alcoholic beverages having an alcoholic content of more than 14% by volume and served to an individual in a quantity less than the quantity contained in a closed package for consumption on premises licensed under this article.
[1]
Editor's Note: See now Code of Virginia, § 4.1-100.
All licenses granted or issued pursuant to the provisions of this article shall expire on June 30 next following the date on which they were granted or issued. Any license granted or issued by the Virginia Alcoholic Beverage Control Board which is extended by such Board shall automatically extend for a like period the City license issued to the same person.
A. 
The tax on each license issued pursuant to this article shall be subject to proration to the following extent: if the license is issued in the second quarter of the license year, the tax shall be decreased by 1/4; if issued in the third quarter of the license year, the tax shall be decreased by 1/2; and if issued in the fourth quarter of any year, the tax shall be decreased by 3/4.
B. 
Nothing in this article shall be construed as exempting any licensee from any other City tax whatsoever.
The City Council may correct erroneous assessments made against any person and make refunds of any amounts collected pursuant to erroneous assessments or collected as taxes on licenses which are subsequently refused or application therefor withdrawn. No refunds shall be made of any such amount, however, unless made within one year from the date of collection on the same.
Revocation or suspension of any license issued by the Virginia Alcoholic Beverage Control Board shall constitute an automatic revocation or suspension of the license issued to the same person under this article. No licensee under this article shall be entitled to a refund or abatement of any tax paid under this article where there has been a revocation or a suspension of the license issued by the Virginia Alcoholic Beverage Control Board.
[Adopted by Ord. No. 96-10 (Ch. 12, Art. I of the 1970 Code)]
A. 
Except as may be otherwise provided by the laws of the Commonwealth of Virginia, and notwithstanding any other current ordinances or resolutions enacted by this Council, whether or not compiled in the Code of the City of Lexington, to the extent of any conflict, the following provisions shall be applicable to the levy, assessment, and collection of licenses required and taxes imposed on businesses, trades, professions and callings and upon the persons, firms and corporations engaged therein within this locality.
B. 
It is the declared intent of the City to avoid either discrimination or protective license taxation as it affects any business, trade or occupation, regardless of location or type of transaction.
[Amended by Ord. No. 05-9]
For the purposes of this article, unless otherwise required by the context, the following terms shall have the meanings indicated:
AFFILIATED GROUP
A. 
One or more chains of includable corporations connected through stock ownership with a common parent corporation which is an includable corporation if:
(1) 
Stock possessing at least 80% of the voting power of all classes of stock and at least 80% of each class of the nonvoting stock of each of the includable corporations, except the common parent corporation, is owned directly by one or more of the other includable corporations; and
(2) 
The common parent corporation directly owns stock possessing at least 80% of the voting power of all classes of stock and at least 80% of each class of the nonvoting stock of at least one of the other includable corporations. As used in this subsection, the term "stock" does not include nonvoting stock which is limited and preferred as to dividends. The term "includable corporation" means any corporation within the affiliated group irrespective of the state or country of its incorporation, and the term "receipts" includes gross receipts and gross income.
B. 
Two or more corporations if five or fewer persons who are individuals, estates or trusts own stock possessing:
(1) 
At least 80% of the total combined voting power of all classes of stock entitled to vote or at least 80% of the total value of shares of all classes of the stock of each corporation; and
(2) 
More than 50% of the total combined voting power of all classes of stock entitled to vote or more than 50% of the total value of shares of all classes of stock of each corporation, taking into account the stock ownership of each such person only to the extent such stock ownership is identical with respect to each such corporation.
C. 
When one or more of the includable corporations, including the common parent corporation, is a nonstock corporation, the term "stock" as used in this definition shall refer to the nonstock corporation membership or membership voting rights, as is appropriate to the context.
ALCOHOL
The product known as ethyl or grain alcohol obtained by distillation of any fermented liquor, rectified either once or more often, whatever may be the origin thereof, and shall include synthetic ethyl alcohol, but shall not include methyl alcohol and alcohol completely denatured in accordance with formulas approved by the government of the United States. The word "alcohol" when used in the phrase "more than three and two-tenths per centum of alcohol by weight" shall mean all alcohol whether obtained by distillation, fermentation or otherwise.
ALCOHOLIC BEVERAGES
Includes the four varieties of liquor defined herein as alcohol, spirits, wine, and beer, and any one or more of such varieties, and every liquid or solid, patented or not, containing alcohol, spirits, wine or beer and capable of being consumed by a human being. Any liquid or solid containing more than one of the four varieties above defined shall be considered as belonging to that variety which has the higher percentage of alcohol, however obtained.
ASSESSMENT
A determination as to the proper rate of tax, the measure to which the tax rate is applied, and ultimately the amount of tax, including additional or omitted tax, that is due. An assessment shall include a written assessment made pursuant to notice by the assessing official or a self-assessment made by a taxpayer upon the filing of a return or otherwise not pursuant to notice. Assessments shall be deemed made by an assessing official when a written notice of assessment is delivered to the taxpayer by the assessing official or an employee of the assessing official or mailed to the taxpayer at his last known address. Self-assessments shall be deemed made when a return is filed or, if no return is required, when the tax is paid. A return filed or tax paid before the last day prescribed by ordinance for the filing or payment thereof shall be deemed to be filed or paid on the last day specified for the filing of a return or the payment of tax, as the case may be.
ASSESSOR or ASSESSING OFFICIAL
The Commissioner of the Revenue of this jurisdiction.
BASE YEAR
The calendar year preceding the license year, except for contractors subject to the provisions of § 58.1-3715 of the Code of Virginia. Whenever any person begins a business, trade or occupation on or after January 1 of the license year, so much of the license tax imposed by this article as is based on gross receipts shall be measured by the applicant's estimate of gross receipts that will be made and received from the commencement of the business, trade or occupation to the end of the license year.
BEER
Any beverage obtained by the alcoholic fermentation of an infusion or decoction of barley, malt and hops or of any similar products in drinkable water and containing, unless otherwise expressly provided, more than three and two-tenths per centum of alcohol by weight. This definition shall include ale, porter and stout.
BROKER
An agent of a buyer or a seller who buys or sells stocks, bonds, commodities, or services, usually on a commission basis.
BUSINESS
A course of dealing which requires the time, attention and labor of the person so engaged for the purpose of earning a livelihood or profit. It implies a continuous and regular course of dealing, rather than an irregular or isolated transaction. A person may be engaged in more than one business. The following acts shall create a rebuttable presumption that a person is engaged in a business: advertising or otherwise holding oneself out to the public as being engaged in a particular business or filing tax returns, schedules and documents that are required only of persons engaged in a trade or business.
CARNIVAL
An aggregation of shows, amusements, concessions and riding devices or any of them operated together on one lot or street or on contiguous lots or streets, moving from place to place, whether the same are owned or actually operated by separate persons or not. The term includes, but is not limited to, sideshows, dog and pony shows, trained animal shows, circuses and menageries.
COIN MACHINE AMUSEMENT OPERATOR
Any person or persons selling, leasing, renting or otherwise furnishing or providing a coin-operated amusement machine or device operated on the coin-in-the-slot principle; provided, however, that the term "operator" shall not include a person owning fewer than three coin machines and operating such machines on property owned or leased by such person, firm or corporation. An amusement machine is any coin-operated machine other than weighing machines, automatic baggage or parcel checking machines or receptacles, machines vending goods, wares, merchandise or stamps or which provide service only, viewing or photomat machines, or devices affording rides to children or for the delivery of newspapers.
COMMODITY
Staples such as wool, cotton, etc., which are traded on a commodity exchange and on which there is trading in futures.
CONTRACTOR
A general contractor or subcontractor. Every contractor, whether a general contractor or a subcontractor, is a contractor for the purposes of local license taxation. The imposition of a license tax on the gross receipts of a general contractor and also a subcontractor is not double taxation. Each is engaged in business in his own right and licensable accordingly. "Contractor" shall have the meaning prescribed in § 58.1-3714D of the Code of Virginia, as amended, whether such work is done or offered to be done by day labor, general contract or subcontract.
DEALER
Any person engaged in the business of buying and selling securities for his own account, but does not include a bank, or any person insofar as he buys or sells securities for his own account, either individually or in some fiduciary capacity, but not as part of a regular business.
DEFINITE PLACE OF BUSINESS
An office or a location at which occurs a regular and continuous course of dealing for 30 consecutive days or more. A definite place of business for a person engaged in business may include a location leased or otherwise obtained from another person on a temporary or seasonal basis, and real property leased to another. A person's residence shall be deemed to be a definite place of business if there is no definite place of business maintained elsewhere and the person is not licensable as a peddler or itinerant merchant.
FARMER'S MARKET VENDOR
Any person who shall offer to sell or barter any goods, wares or merchandise at the Lexington Farmer's Market as allowed by the Farmer's Market Committee. Farmer's market vendors shall be exempt from the requirement to obtain a business license or pay any fee for such license for sales or barters made at the farmer's market.
[Added 1-20-2022 by Ord. No. 2022-01]
FINANCIAL SERVICES
The buying, selling, handling, managing, investing, and providing of advice regarding money, credit, securities and other investments and shall include the service for compensation by a credit agency, an investment company, a broker or dealer in securities and commodities or a security or commodity exchange, unless such service is otherwise provided for in this article. Those engaged in rendering financial services include, but without limitation, the following:
Buying installment receivables
Chattel mortgage financing
Consumer financing
Credit card services
Credit unions
Factors
Financing accounts receivable
Industrial loan companies
Installment financing
Inventory financing
Loan or mortgage brokers
Loan or mortgage companies
Safety deposit box companies
Security and commodity brokers and services
Stockbroker
Working capital financing
FORTUNE-TELLER
A clairvoyant, a practitioner of palmistry, a phrenologist, a faith healer, a star analyst, a handwriting analyst who attempts to predict the future, or any other person who attempts to predict the future.
GROSS RECEIPTS
The whole, entire, total receipts attributable to the licensed privilege, without deduction, except as may be limited by the provisions of Chapter 37 of Title 58.1 of the Code of Virginia.
ITINERANT VENDER; ITINERANT AUCTIONEER
A person who shall engage in, do or transact any temporary or transient business in the City either in one locality or in traveling from place to place in the sale of goods, wares and merchandise and who for the purpose of carrying on such business shall hire, lease, use or occupy any building or structure, motor vehicle, tent, car, boat or public room or any part thereof, including rooms in hotels, lodging houses or houses of private entertainment, or in any road, street, alley or other public place in the City, for a period of less than one year, for the exhibition of or sale of such goods, wares or merchandise.
LICENSE YEAR
The calendar year for which a license is issued for the privilege of engaging in business.
MASSAGE PARLOR
Any building, room or other enclosure, whether permanent or temporary, utilized for the giving of massages.
A. 
This definition is not applicable to:
(1) 
Hospitals, clinics, medical offices or treatment centers where such services are performed by duly licensed practitioners of the healing arts;
(2) 
Facilities utilized by schools and colleges generally for the care and treatment of athletic injuries, which facilities are not open to the general public; or
(3) 
Facilities utilized by massage therapists or massage practitioners who have completed a professional massage technician curriculum certified by the Board of Education of the Commonwealth of Virginia, by the American Massage Therapy Association or the Associated Bodywork and Massage Professionals or a massage therapist who is able to furnish a diploma from a recognized educational institute or other indicia of completion of a course in massage therapy which requires at a minimum 350 hours of course work which may include practical training as a normal part of the course. Recognition or certification of the facility may be waived by the Commissioner if the applicant provides sufficient documentation to substantiate the quality of the facility providing the training.
B. 
Those professionals set forth in Subsection A(1), (2) and (3) shall be subject to § 255-15C of this article.
PEDDLER
Any person who shall carry from place to place any goods, wares or merchandise and offer to sell or barter the same, or actually sell or barter the same, shall be deemed to be a peddler. All persons who do not keep a regular place of business, whether it be a house or a vacant lot or elsewhere, open at all times in regular business hours and at the same place, who shall offer for sale foods, wares and merchandise, shall be deemed peddlers. All persons who keep a regular place of business, open at all times in regular business hours and at the same place, who shall, elsewhere than at such regular place of business, personally or through their agents, offer for sale or sell and, at the time of such offering for sale, deliver goods, wares and merchandise also shall be deemed peddlers as above, but this shall not apply to those who sell or offer for sale in person or by their employees ice, wood, charcoal, meats, milk, butter, eggs, poultry, fish, oysters, game vegetables, fruits or other family supplies of a perishable nature or farm products grown or produced by them and not purchased by them for sale, but a dairyman who uses upon the streets of the City one or more vehicles may sell and deliver from his vehicles milk, butter, cream and eggs in such City without procuring a peddler's license. No vendor at the Lexington Farmer's Market shall be considered a peddler under this definition. Please see the definition above for "farmer's market vendor."
[Amended 1-20-2022 by Ord. No. 2022-01]
PEDDLERS TO LICENSED DEALERS AND RETAILERS
Any person who, at other than a definite place of business operated by the seller, shall sell or offer to sell goods, wares or merchandise to licensed dealers or retailers and at the time such sale or exposure for sale shall deliver, or offer to deliver, the goods, wares or merchandise to the buyer; any delivery made on the day of sale shall be construed as equivalent to delivery at the time of sale.
PERSON
Any individual, firm, copartnership, corporation, company, association or joint-stock association. Such term shall include any trustee, receiver, assignee or personal representative thereof carrying on or continuing a business, profession, trade or occupation, but shall not include a court-appointed trustee, receiver or personal representative, in the liquidation of assets for immediate distribution, or a sergeant or sheriff or any deputy, selling under authority of process or writ of a court of justice. Such term shall not include a volunteer fire department, a volunteer rescue squad or a nonprofit organization operating a community center, swimming pool, tennis court or other educational, cultural, recreational and athletic facilities and facilities for the welfare of the residents of the area.
PERSONAL SERVICES
Rendering for compensation any repair, personal, business or other services not specifically classified as financial, real estate or professional service under this article, or rendered in any other business or occupation not specifically classified in this article unless exempted from local license tax by Title 58.1 of the Code of Virginia.
PROFESSIONAL SERVICES
Services performed by architects, attorneys at law, certified public accountants, dentists, engineers, land surveyors, surgeons, veterinarians, and practitioners of the healing arts (the arts and sciences dealing with the prevention, diagnosis, treatment and cure or alleviation of human physical or mental ailments, conditions, diseases, pain or infirmities) and such occupations, and no others, as the Virginia Department of Taxation may list in the BPOL guidelines promulgated pursuant to § 58.1-3701 of the Code of Virginia. The Department shall identify and list each occupation or vocation in which a professed knowledge of some department of science or learning, gained by a prolonged course of specialized instruction and study, is used by its practical application to the affairs of others, either advising, guiding, or teaching them, and in serving their interests or welfare in the practice of an art or science founded on it. The word "profession" implies attainments in professional knowledge as distinguished from mere skill, and the application of knowledge to uses for others rather than for personal profit.
PURCHASES
All goods, wares and merchandise received for sale at each definite place of business of a wholesale merchant. The term shall also include the cost of manufacture of all goods, wares and merchandise manufactured by any wholesaler or wholesale merchant and sold or offered for sale. Such merchant may elect to report the gross receipts from the sale of manufactured goods, wares and merchandise if it cannot determine or chooses not to disclose the cost of manufacture.
REAL ESTATE SERVICES
Rendering a service for compensation as lessor, buyer, seller, agent or broker and providing a real estate service, unless the service is otherwise specifically provided for in this article, and such services include, but are not limited to, the following:
Appraisers of real estate
Escrow agents, real estate
Fiduciaries, real estate
Lessors of real property
Real estate agents, brokers and managers
Real estate selling agents
Rental agents for real estate
RETAILER or RETAIL MERCHANT
Any person or merchant who sells goods, wares and merchandise for use or consumption by the purchaser or for any purpose other than resale by the purchaser, but does not include sales at wholesale to institutional, commercial and industrial users.
SECURITY
Shall have the same meaning as in the Securities Act (§ 13.1-501 et seq.) of the Code of Virginia or in similar laws of the United States regulating the sale of securities.
SERVICES
Things purchased by a customer which do not have physical characteristics, or which are not goods, wares, or merchandise.
SPIRITS
Any beverage which contains alcohol obtained by distillation mixed with drinkable water and other substances, in solution, and includes, among other things, brandy, rum, whiskey and gin, or any one or more of the last four named ingredients, but shall not include any such liquors completely denatured in accordance with formulas approved by the government of the United States.
WHOLESALER or WHOLESALE MERCHANT
Any person or merchant who sells wares and merchandise for resale by the purchaser, including sales when the goods, wares and merchandise will be incorporated into goods and services for sale, and also includes sales to institutional, commercial, government and industrial users which because of the quantity, price, or other terms indicate that they are consistent with sales at wholesale.
WINE
Any beverage obtained by the fermentation of the natural sugar contents of fruits or other agricultural products containing sugar, including honey and milk, either with or without additional sugar, and containing more than three and two-tenths per centum of alcohol by weight.
A. 
Every person engaging in this jurisdiction in any business, trade, profession, occupation or calling (collectively hereinafter a "business") as defined in this article, unless otherwise exempted by law, shall apply for a license for each such business if such person maintains a definite place of business in this jurisdiction; such person does not maintain a definite office anywhere but does maintain an abode in this jurisdiction, which abode for the purposes of this article shall be deemed a definite place of business; or there is no definite place of business but such person operates amusement machines, is engaged as a peddler or itinerant merchant, carnival or circus as specified in § 58.1-3717, 58.1-3718 or 58.1-3728, respectively, of the Code of Virginia, or is a contractor subject to § 58.1-3715 of the Code of Virginia, or is a public service corporation subject to § 58.1-3731 of the Code of Virginia. A separate license shall be required for each definite place of business. A person engaged in two or more businesses or professions carried on at the same place of business may elect to obtain one license for all such businesses and professions if all of the following criteria are satisfied:
(1) 
Each business or profession is licensable at the location and has satisfied any requirements imposed by state law or other provisions of the ordinances of this jurisdiction;
(2) 
All of the businesses or professions are subject to the same tax rate, or, if subject to different tax rates, the licensee agrees to be taxed on all businesses and professions at the highest rate; and
(3) 
The taxpayer agrees to supply such information as the Assessor may require concerning the nature of the several businesses and their gross receipts.
B. 
Every person required to pay a license tax or to obtain any tag or sign under the provisions of this article shall keep the license tag or sign in a convenient place and, whenever required to do so, shall exhibit the same to any authorized representative of the City. No license measured by volume of business shall be required to be publicly displayed.
C. 
Each person subject to a license tax shall apply for a license prior to beginning business, if he was not subject to licensing in this jurisdiction on or before January 1 of the license year, or no later than March 1 of the current license year if he had been issued a license for the preceding license year. The application shall be on forms prescribed by the assessing official.
D. 
The tax shall be paid with the application in the case of any license not based on gross receipts. If the tax is measured by the gross receipts of the business, the tax shall be paid on or before March 1 of the current license year.
E. 
All licenses issued under the provisions of this article shall expire on December 31 of each year, except where it is otherwise specifically provided. There shall be no abatement from or proration of any license tax imposed hereunder, except as set forth in Subsection I of this section, and except that any person who pays a flat rate license and shall begin business after the beginning of the license tax year shall pay to the City a tax for the whole of such year, but such portion of such tax as the period between the first day of such year and the date of issuing the license shall bear to the whole year shall be deducted from the license tax to be assessed against such person for the privilege of doing the same business for the ensuing year when the same becomes payable, and except, further, that in computing such tax, no deduction shall be made therefrom for any fractional part of a month. The foregoing provision shall not apply to any gross receipts licenses issued under this article or to any license computed upon the amount of sales or contracts made or done by the licensee during the preceding year, nor shall these provisions apply to any such license taxes the proration of which is expressly prohibited under other sections of this article.
F. 
The assessing official may grant an extension of time, not to exceed 90 days, in which to file an application for a license, for reasonable cause. The extension shall be conditioned upon the timely payment of a reasonable estimate of the appropriate tax, subject to adjustment to the correct tax at the end of the extension, together with interest from the due date until the date paid, and, if the estimate submitted with the extension is found to be unreasonable under the circumstances, a penalty of 10% of the portion paid after the due date.
G. 
A penalty of 10% of the tax may be imposed upon the failure to file an application or the failure to pay the tax by the appropriate due date. Only the late filing penalty shall be imposed by the assessing official if both the application and payment are late; however, both penalties may be assessed if the assessing official determines that the taxpayer has a history of noncompliance. In the case of an assessment of additional tax made by the assessing official, if the application and, if applicable, the return were made in good faith and the understatement of the tax was not due to any fraud or reckless or intentional disregard of the law by the taxpayer, there shall be no late payment penalty assessed with the additional tax. If any assessment of tax by the assessing official is not paid within 30 days, the Treasurer may impose a ten-percent late payment penalty. The penalties shall not be imposed or, if imposed, shall be abated by the official who assessed them if the failure to file or pay was not the fault of the taxpayer. In order to demonstrate lack of fault, the taxpayer must show that he acted responsibly and that the failure was due to events beyond his control.
(1) 
"Acted responsibly" means that the taxpayer exercised the level of reasonable care that a prudent person would exercise under the circumstances in determining the filing obligations for the business and the taxpayer undertook significant steps to avoid or mitigate the failure, such as requesting appropriate extensions (where applicable), attempting to prevent a foreseeable impediment, acting to remove an impediment once it occurred, and promptly rectifying a failure once the impediment was removed or the failure discovered.
(2) 
"Events beyond the taxpayer's control" include, but are not limited to, the unavailability of records due to fire or other casualty; the unavoidable absence (e.g., due to death or serious illness) of the person with the sole responsibility for tax compliance; or the taxpayer's reasonable reliance in good faith upon erroneous written information from the assessing official, who was aware of the relevant facts relating to the taxpayer's business when he provided the erroneous information.
H. 
Interest shall be charged on the late payment of the tax from the due date until the date paid without regard to fault or other reason for the late payment. Whenever an assessment of additional or omitted tax by the assessing official is found to be erroneous, all interest and penalty charged and collected on the amount of the assessment found to be erroneous shall be refunded together with interest on the refund from the date of payment or the due date, whichever is later. Interest shall be paid on the refund of any tax paid under this article from the date of payment or due date, whichever is later, whether attributable to an amended return or other reason. Interest on any refund shall be paid at the same rate charged under § 58.1-3916 of the Code of Virginia. No interest shall accrue on an adjustment of estimated tax liability to actual liability at the conclusion of a base year. No interest shall be paid on a refund or charged on a late payment, in the event of such adjustment, provided that the refund or the late payment is made not more than 30 days from the date of the payment that created the refund or the due date of the tax, whichever is later.
I. 
Any taxpayer who ceases to engage in the business, trade profession or calling during a year from which a license tax based on gross receipts already has been paid shall be entitled, upon application, to a refund for that portion of the license tax already paid, prorated on a monthly basis or upon the difference between the tax already paid and the tax which otherwise would be assessed on the actual gross receipts of the taxpayer, whichever is lesser.
(1) 
Any refund to which a taxpayer may be entitled under this section may be remitted in the ensuing fiscal year, and the Treasurer also may offset against such refund any amount of past due taxes owed by the same taxpayer to the City.
(2) 
Nothing in this section shall be construed as requiring the City to make a refund of any part of a flat fee or a minimum flat tax.
[Amended by Ord. No. 05-9]
A. 
General rule. Whenever the tax imposed by this article is measured by gross receipts, the gross receipts included in the taxable measure shall be only those gross receipts attributed to the exercise of a licensable privilege at a definite place of business within this jurisdiction. In the case of activities conducted outside of a definite place of business, such as during a visit to a customer location, the gross receipts shall be attributed to the definite place of business from which such activities are initiated, directed, or controlled. The situs of gross receipts for different classifications of business shall be attributed to one or more definite places of business or offices as follows:
(1) 
The gross receipts of a contractor shall be attributed to the definite place of business at which his services are performed, or if his services are not performed at any definite place of business, then the definite place of business from which his services are directed or controlled, unless the amount of business done in the City by the contractor exceeds the sum of $25,000 for the license year.
(2) 
The gross receipts of a retailer or wholesaler shall be attributed to the definite place of business at which sales solicitation activities occur, or if sales solicitation activities do not occur at any definite place of business, then the definite place of business from which sales solicitation activities are directed or controlled; however, a wholesaler or distribution house subject to a license tax measured by purchases shall determine the situs of its purchases by the definite place of business at which or from which deliveries of the purchased goods, wares and merchandise are made to customers. Any wholesaler who is subject to license tax in two or more localities and who is subject to multiple taxation because the localities use different measures may apply to the Department of Taxation for a determination as to the proper measure of purchases and gross receipts subject to license tax in each locality.
(3) 
The gross receipts of a business renting tangible personal property shall be attributed to the definite place of business from which the tangible personal property is rented or, if the property is not rented from any definite place of business, then the definite place of business at which the rental of such property is managed.
(4) 
The gross receipts from the performance of services shall be attributed to the definite place of business at which the services are performed or, if not performed at any definite place of business, then the definite place of business from which the services are directed or controlled.
B. 
Apportionment. If the licensee has more than one definite place of business and it is impractical or impossible to determine to which definite place of business gross receipts should be attributed under the general rule (and the affected jurisdictions are unable to reach an apportionment agreement), except as to circumstances set forth in § 58.1-3709 of the Code of Virginia, the gross receipts of the business shall be apportioned between the definite places of business on the basis of payroll. Gross receipts shall not be apportioned to a definite place of business unless some activities under the applicable general rule occurred at, or were controlled from, such definite place of business. Gross receipts attributable to a definite place of business in another jurisdiction shall not be attributed to this jurisdiction solely because the other jurisdiction does not impose a tax on the gross receipts attributable to the definite place of business in such other jurisdiction.
C. 
Agreements. The Assessor may enter into agreements with any other political subdivision of Virginia concerning the manner in which gross receipts shall be apportioned among definite places of business. However, the sum of the gross receipts apportioned by the agreement shall not exceed the total gross receipts attributable to all of the definite places of business affected by the agreement. Upon being notified by a taxpayer that its method of attributing gross receipts is fundamentally inconsistent with the method of one or more political subdivisions in which the taxpayer is licensed to engage in business and that the difference has, or is likely to, result in taxes on more than 100% of its gross receipts from all locations in the affected jurisdictions, the Assessor shall make a good faith effort to reach an apportionment agreement with the other political subdivisions involved.
[Amended by Ord. No. 05-9]
A. 
Where, before the expiration of the time prescribed for the assessment of any license tax imposed pursuant to this article, both the assessing official and the taxpayer have consented in writing to its assessment after such time, the tax may be assessed at any time prior to the expiration of the period agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
B. 
Notwithstanding § 58.1-3903 of the Code of Virginia, the assessing official shall assess the local license tax omitted because of fraud or failure to apply for a license for the current license year and the three preceding years.
C. 
The period for collecting any local license tax shall not expire prior to the period specified in § 58.1-3940 of the Code of Virginia, two years after the date of assessment if the period for assessment has been extended pursuant to this section, two years after the final determination of an appeal for which collection has been stayed pursuant to the following § 255-12B or C of this article, or two years after the final decision in a court application pursuant to § 58.1-3984 of the Code of Virginia or similar law for which collection has been stayed, whichever is later.
D. 
Whenever the Commissioner of the Revenue shall ascertain that any person shall be assessed with any additional license taxes pursuant to the provisions of this article, it shall be his duty to assess such person with such additional license taxes as may be reported to him to be due. In the event that such additional license taxes so assessed shall not have been paid within 30 days after such assessment, the Commissioner of the Revenue shall proceed to collect the same as delinquent taxes.
E. 
Licenses issued under this article shall be transferable, except where otherwise provided, but in no case shall any transfer of license be legal or valid unless and until notice in writing of such transfer shall have been given to the Commissioner of the Revenue, who shall have approved such transfer in writing on the license. Such notice shall state the time of the transfer and the place of business and name of the person to whom transferred. The Commissioner of the Revenue shall keep a record of such transfers and shall submit a copy of each such transfer to the proper enforcement officer.
F. 
The Commissioner of the Revenue shall not issue a license for conducting any business, trade or occupation at a location where the conducting of such business, trade or occupation at such location is prohibited by the zoning regulations of the City.[1]
[1]
Editor's Note: See Ch. 420, Zoning.
A. 
Any person assessed with a licensing tax under this article as the result of an audit may apply within 90 days from the date of the assessment to the assessing official for a correction of the assessment. The application must be filed in good faith and sufficiently identify the taxpayer, audit period, remedy sought, each alleged error in the assessment, the grounds upon which the taxpayer relies, and any other facts relevant to the taxpayer's contention. The Assessor may hold a conference with the taxpayer if requested by the taxpayer or require submission of additional information and documents, further audit, or other evidence deemed necessary for a proper and equitable determination of the application. The assessment shall be deemed prima facie correct. The Assessor shall undertake a full review of the taxpayer's claims and issue a determination to the taxpayer setting forth his position. Every assessment pursuant to an audit shall be accompanied by a written explanation of the taxpayer's right to seek correction and the specific procedure to be followed in the jurisdiction (e.g., the name and address to which an application should be directed).
B. 
Provided that an application is made within 90 days of an assessment, collection activity shall be suspended until a final determination is issued by the Assessor, unless the Assessor determines that collection would be jeopardized by delay or that the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with the provisions of § 255-9G of this article, but no further penalty shall be imposed while collection action is suspended. The term "jeopardized by delay" includes a finding that the application is frivolous, or that a taxpayer desires to depart quickly from the locality, to remove his property therefrom, to conceal himself or his property therein, or to do any other act tending to prejudice, or to render wholly or partially ineffectual, proceedings to collect the tax for the period in question.
C. 
Any person assessed with a license tax under this article as a result of an audit may apply within 90 days of the determination by the assessing official on an application pursuant to Subsection A above to the Tax Commissioner for a correction of such assessment. The Tax Commissioner shall issue a determination to the taxpayer within 90 days of receipt of the taxpayer's application, unless the taxpayer and the assessing official are notified that a longer period will be required. The application shall be treated as an application pursuant to § 58.1-1821 of the Code of Virginia, and the Tax Commissioner may issue an order correcting such assessment pursuant to § 58.1-1822 of the Code of Virginia. Following such an order, either the taxpayer or the assessing official may apply to the appropriate Circuit Court pursuant to § 58.1-3984 of the Code of Virginia. However, the burden shall be on the party making the application to show that the ruling of the Tax Commissioner is erroneous. Neither the Tax Commissioner nor the Department of Taxation shall be made a party to an application to correct an assessment merely because the Tax Commissioner has ruled on it.
D. 
On receipt of a notice of intent to file an appeal to the Tax Commissioner under Subsection C above, the assessing official shall further suspend collection activity until a final determination is issued by the Tax Commissioner, unless the Assessor determines that collection would be jeopardized by delay or that the taxpayer has not responded to a request for relevant information after a reasonable time. Interest shall accrue in accordance with the provisions of § 255-9G, but no further penalty shall be imposed while collection action is suspended. The term "jeopardized by delay" shall have the same meaning as set forth in Subsection B above.
E. 
Any taxpayer may request a written ruling regarding the application of the tax to a specific situation from the Assessor. Any person requesting such a ruling must provide all the relevant facts for the situation and may present a rationale for the basis of an interpretation of the law most favorable to the taxpayer. Any misrepresentation or change in the applicable law or the factual situation as presented in the ruling request shall invalidate any such ruling issued. A written ruling may be revoked or amended prospectively if there is a change in the law, a court decision, or the Assessor notifies the taxpayer of a change in the policy or interpretation upon which the ruling was based. However, any person who acts on a written ruling which later becomes invalid shall be deemed to have acted in good faith during the period in which such ruling was in effect.
A. 
Every person who is assessable with a license tax shall keep sufficient records to enable the Assessor to verify the correctness of the tax paid for the license years assessable and to enable the Assessor to ascertain what is the correct amount of tax that was assessable for each of those years. All such records, books of accounts and other information shall be open to inspection and examination by the Assessor in order to allow the Assessor to establish whether a particular receipt is directly attributable to the taxable privilege exercised within this jurisdiction. The Assessor shall provide the taxpayer with the option to conduct the audit in the taxpayer's local business office, if the records are maintained there. In the event that the records are maintained outside this jurisdiction, copies of the appropriate books and records shall be sent to the Assessor's office upon demand.
B. 
Any person who shall refuse to permit the Commissioner of the Revenue or his authorized agent to examine and audit his records, books and papers pertaining to the gross receipts of such person shall be guilty of violation of this article and, upon conviction thereof, shall be fined not more than $500. This penalty shall likewise apply to any nonresident person who shall fail or refuse to bring his records, books and papers pertaining to gross receipts to the office of the Commissioner of the Revenue for such production.
A. 
General rule. Gross receipts for license tax purposes shall not include any amount not derived from the exercise of the licensed privilege to engage in a business or profession in the ordinary course of business or profession.
B. 
The following items shall be excluded from gross receipts:
(1) 
Amounts received and paid to the United States, the commonwealth or any county, city or town for the Virginia retail sales or use tax, or for any local sales tax or any local excise tax on cigarettes, or for any federal or state excise taxes on motor fuels.
(2) 
Any amount representing the liquidation of a debt or conversion of another asset to the extent that the amount is attributable to a transaction previously taxed (e.g., the factoring of accounts receivable created by sales which have been included in taxable receipts even though the creation of such debt and factoring are a regular part of its business).
(3) 
Any amount representing returns and allowances granted by the business to its customer.
(4) 
Receipts which are the proceeds of a loan transaction in which the licensee is the obligor.
(5) 
Receipts representing the return of principal of a loan transaction in which the licensee is the creditor, or the return of principal or basis upon the sale of a capital asset.
(6) 
Rebates and discounts taken or received on account of purchases by the licensee. A rebate or other incentive offered to induce the recipient to purchase certain goods or services from a person other than the offeror, and which the recipient assigns to the licensee in consideration of the sale of goods and services, shall not be considered a rebate or discount to the licensee but shall be included in the licensee's gross receipts together with any handling or other fees related to the incentive.
(7) 
Withdrawals from inventory for purposes other than sale or distribution and for which no consideration is received and the occasional sale or exchange of assets other than inventory, whether or not a gain or loss is recognized for federal income tax purposes.
(8) 
Investment income not directly related to the privilege exercised by a licensable business not classified as rendering financial services. This exclusion shall apply to interest on bank accounts of the business, and to interest, dividends and other income derived from the investment of its own funds in securities and other types of investments unrelated to the licensed privilege. This exclusion shall not apply to interest, late fees and similar income attributable to an installment sale or other transaction that occurred in the regular course of business.
C. 
The following shall be deducted from gross receipts or gross purchases that would otherwise be taxable:
(1) 
Any amount paid for computer hardware and software that are sold to a United States federal or state government entity, provided that such property was purchased within two years of the sale to said entity by the original purchaser who shall have been contractually obligated at the time of purchase to resell such property to a state or federal government entity. This deduction shall not occur until the time of resale and shall apply to only the original cost of the property and not to its resale price, and the deduction shall not apply to any of the tangible personal property which was the subject of the original resale contract if it is not resold to a state or federal government entity in accordance with the original contract obligation.
(2) 
Any receipts attributable to business conducted in another state or foreign country in which the taxpayer is liable for an income or other tax based upon income.
[Amended by Ord. No. 97-2; Ord. No. 02-3]
Every person or business subject to licensure under this article shall be assessed and required to pay annually a license fee of $30 or the applicable rate per $100 of gross receipts, specified below, whichever is greater.
A. 
For contractors and persons constructing for their own account for sale, $0.16 per $100 of gross receipts.
B. 
For retailers, $0.20 per $100 of gross receipts.
C. 
For financial, real estate and professional services, $0.58 per $100 of gross receipts.
D. 
Every person who shall for compensation enter into any bond or bonds for others, whether as a principal or surety, shall pay to the City an annual license tax of $50.
E. 
For repair, personal and business services and all other businesses and occupations not specifically listed or exempted in this article or otherwise by law, $0.36 per $100 of gross receipts.
F. 
For wholesalers, $0.05 per $100 of purchases.
G. 
For carnivals, circuses and speedways, $150 for each performance held in this jurisdiction (see § 58.1-3728 of the Code of Virginia for limitations).
H. 
For fortune-tellers, clairvoyants and practitioners of palmistry, $750 per year.
I. 
Every person engaged in the business of operating a massage parlor shall pay to the City an annual license tax of $1,500. The license tax levied under this subsection is in addition to the liability of such person to pay an annual license tax based on gross receipts as hereinafter set forth.
J. 
For itinerant merchants or peddlers, as follows:
[Amended 8-20-2009 by Ord. No. 2009-08; 12-7-2017 by Ord. No. 2017-13]
(1) 
Every peddler who sells food and/or drinks in the City from a food truck, food trailer or food cart, $300 per year. (See limitation in § 58.1-3717 of the Code of Virginia.)
(2) 
Every peddler who sells ice cream or frozen food items in the City operating exclusively from a marked motor vehicle, $50 per year or the tax due based on gross annual receipts, whichever is greater. (See limitation in § 58.1-3717 of the Code of Virginia.)
(3) 
Every other peddler, $500 per year. (See limitation in § 58.1-3717 of the Code of Virginia.) Such fee may be waived by the City Council for approved special events sponsored by community organizations.
(4) 
For businesses selling items off-premises, who have a valid business license at their regular place of business within the City, such sales shall be included under that business' normal business license, and they shall not be required to pay the fee of $500 in Subsection J(3) above.
K. 
For photographers, $30 per year (see limitation in § 58.1-3727) of the Code of Virginia.
L. 
Any person defined as a coin machine amusement operator shall pay to the City an annual license tax of $20 per machine not exceeding a maximum of $200. The tax assessed under this subsection is in addition to the license tax assessed against such operators on a gross receipts basis as set forth elsewhere in this article.
M. 
For savings and loan associations and credit unions, $50 per year.
N. 
For direct sellers as defined in § 58.1-3719.1 of the Code of Virginia with total annual sales in excess of $4,000, $0.20 per $100 of total annual retail sales or $0.05 per $100 of total annual wholesale sales, whichever is applicable.
O. 
Each person holding a mixed beverage restaurant and caterer's license issued by the Virginia Alcoholic Beverage Control Board shall obtain from the Commissioner of the Revenue of the City a license to sell mixed beverages in the City and the tax upon the issuance of such licenses shall be as follows:
(1) 
Person operating restaurants, including restaurants located on premises of and operated by hotels and motels:
(a) 
For each restaurant with a seating capacity at tables for 50 to 100 persons: $100 per annum;
(b) 
For each restaurant with a seating capacity at tables for more than 100 but not more than 150 persons: $175 per annum;
(c) 
For each restaurant with a seating capacity at tables for more than 150 persons: $250 per annum;
(d) 
For each caterer: $250 per annum; and
(e) 
Mixed beverage special events licenses: $10 for each day of each event.
(2) 
A private, nonprofit club operating a restaurant located on the premises of such club: $175 per annum.
P. 
Every person or entity engaged in the business of providing telephone and telegraph communications and furnishing water or sewer, heat, light, power and gas in the City shall pay an annual license tax equal to 1/2 of 1% gross receipts from business accruing in the City, except that charges for long-distance telephone calls shall not be considered receipts of business in the City.